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Assume a $70,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $15,000 $35,000 2 20,000 3 20,000
Assume a $70,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 $15,000 $35,000 2 20,000 3 20,000 20,000 20,000 4 20,000 5 15,000 a. Calculate the payback for investment X and Y. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Investment X Investment Y years years b. Which alternative would you select under the payback method?
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a To calculate the payback period for each investment we need to determine how long it takes for the ...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
